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Giving and promising gifts: experimental evidence on reciprocity from the field

Author

Listed:
  • J. Michelle Brock

    (European Bank for Reconstruction and Development)

  • Andreas Lange

    (University of Hamburg, Department of Economics)

  • Kenneth L. Leonard

    (University of Maryland, Department of Agricultural and Resource Economics)

Abstract

In this study, we consider how gift-exchange and bonus systems function in a natural field setting by measuring the effort response of participants to non-monetary gifts over time. Our field experiment tests the difference in effort response to unconditional gifts delivered immediately, promised unconditional gifts delivered later, and conditional gifts linked to reaching a specific performance target. We find important benefits from promising to give an unconditional gift later: participants respond positively to a promised gift twice by increasing effort when the gift is promised and again when it is received. A promised gift outperforms both the unconditional gift delivered immediately, which leads to a single positive response, and the conditional gift based on performance, which does not trigger any significant behavioural change after the gift is delivered. The study lends insights into the relative effectiveness of gift-exchange and bonus systems and the temporal structure of reciprocal exchange.

Suggested Citation

  • J. Michelle Brock & Andreas Lange & Kenneth L. Leonard, 2014. "Giving and promising gifts: experimental evidence on reciprocity from the field," Working Papers 165, European Bank for Reconstruction and Development, Office of the Chief Economist.
    • Handle: RePEc:ebd:wpaper:165
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    References listed on IDEAS

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    Cited by:

    1. Christiane Bradler & Susanne Neckermann, 2019. "The Magic of the Personal Touch: Field Experimental Evidence on Money and Appreciation as Gifts," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(3), pages 1189-1221, July.
    2. Jorge Coarasa & Jishnu Das, 2015. "Primary Care for the Poor," World Bank Publications - Reports 23657, The World Bank Group.
    3. Bradler, Christiane & Neckermann, Susanne, 2016. "The magic of the personal touch: Field experimental evidence on money appreciation as gifts," ZEW Discussion Papers 16-043, ZEW - Leibniz Centre for European Economic Research.

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    More about this item

    Keywords

    gift exchange; reciprocity; health care; field experiment; Tanzania;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • I1 - Health, Education, and Welfare - - Health
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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